Tesla (TSLA) Delivers Solid Q3 Results: Earnings Beat, Higher Gross Margins, and Cheaper EVs on the Horizon
Tesla (TSLA) recently reported its third-quarter results, which turned out to be a mixed bag. Despite revenue slightly missing estimates, the company managed to beat earnings expectations, leading to a surge in its stock price during after-hours trading. Investors were particularly pleased with the news of higher gross margins and the confirmation that Tesla’s more affordable electric vehicle (EV) is set for production next year. CEO Elon Musk also hinted at the possibility of 20-30% volume growth for Tesla in the coming year.
The revenue for the quarter came in at $25.18 billion, just below the $25.4 billion consensus estimate but still higher than the previous quarter and the same period last year. Tesla posted an adjusted EPS of $0.72, surpassing the expected $0.60 and reported net income of $2.5 billion with free cash flow of $2.9 billion. The gross margin figure of 19.8% far exceeded the expected 16.8%.
Tesla’s stock soared nearly 11% in after-hours trading following the earnings report, highlighting investor confidence in the company’s future trajectory. The company also noted its focus on offering new vehicles, including more affordable models, starting in the first half of 2025.
Despite slightly missing delivery expectations earlier in the quarter, Tesla reported delivering 462,890 vehicles in Q3, marking the first quarter this year with delivery growth. The successful ramp-up of the Model 3 and the positive gross margin achieved by the Cybertruck were notable highlights from the report.
Looking ahead, Tesla anticipates “slight growth” in vehicle deliveries for 2024 with the possibility of 20-30% growth in the following year. Musk’s announcement of Tesla Cybercab volume production in 2026, alongside the company’s testing of robotaxi summoning in the San Francisco area, added to the excitement surrounding Tesla’s future projects.
Additionally, Tesla reported an impressive 30.5% gross margin for its Energy Generation and Storage business in Q3, with expectations of more than doubling the business year-over-year in 2024.
As the story continues to develop, stay tuned for further updates on Tesla’s progress. For the latest financial news, earnings reports, and analysis, be sure to check back for more updates from Extreme Investor Network.